Patisserie Holdings outlines £20m rescue package

By Sophie Witts contact

- Last updated on GMT

Patisserie Valerie restaurant LukeJohnson saved

Related tags: bakery, Restaurant

The future of the Patisserie Valerie chain looks to be secured with chairman Luke Johnson set to bail out the group with a £20m loan.

It follows the Serious Fraud Office confirming it has begun a criminal investigation​ after the company’s finance director was arrested last night and released on bail.

Patisserie Holdings says Johnson is expected to provide a £10m, three-year loan on an interest-free basis.

He will also commit to a further bridging loan of up to £10m to allow the bakery chain to keep trading.

A further £15m will be raised by issuing new shares.

The company says once completed the fundraising will allow its 200+ sites to continue trading “for the foreseeable future”.

It says that it would have to enter administration without an immediate £20m cash injection.

The funding will primarily be used to pay immediate outstanding liabilities, including amounts owed to HM Revenue & Customs and trade creditors.

Patisserie Holdings also confirmed it has net debt of approximately £9.8m.

It says statements on the cash position of the company were mis-stated and subject to fraudulent activity and accounting.

The company suspended its shares on Wednesday​ amid an investigation in to potential fraud.

Related topics: Business & Legislation

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